**Executive Summary**
This document, issued by the Reserve Bank of India (RBI) on January 05, 2026, pertains to the Second Amendment Directions, 2026, regarding the presentation and disclosures of financial statements for commercial banks. It modifies the existing Directions of 2025. The key amendment is the requirement for banks to disclose details of exposures to related parties in their financial statements, effective April 1, 2026, although earlier implementation is permitted.
**Key Points / Main Content**
* **Amendment to Disclosure Requirements:**
* Chapter-III of the 'Disclosure in Financial Statements – Notes to Accounts' is amended.
* A new sub-sub paragraph (ix) is inserted under sub-paragraph 10(5) on 'Exposures,' specifically for 'Exposures to Related Parties.'
* **Disclosure Table:** Banks are required to disclose the following details of exposures to related parties as defined in *Reserve Bank of India (Commercial Banks – Credit Risk Management) Directions, 2025*, in a table format:
* Loans to Related Parties
* Aggregate value of loans sanctioned to related parties during the year.
* Aggregate value of outstanding loans to related parties as on 31st March.
* Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March.
* Aggregate value of outstanding loans to related parties categorized as:
* Special Mention Accounts as on 31st March.
* Non-Performing Assets as on 31st March.
* Amount of provisions held in respect of loans to related parties as on 31st March.
* Contracts and Arrangements involving Related Parties
* Aggregate value of contracts and arrangements awarded to related parties during the year.
* Aggregate value of outstanding contracts and arrangements involving related parties as on 31st March.
* **Effective Date:** The amendments come into force from April 1, 2026, but banks may choose to implement them earlier.
**Impact Analysis**
**Commercial Banks**
* **Impact:** Commercial banks are required to enhance their financial reporting by including the detailed disclosures related to exposures to related parties. This might necessitate changes in their data collection and reporting systems.
* **Action Required:** Banks must update their financial statement presentation and disclosure practices to incorporate the new requirements. They should implement the changes by April 1, 2026, or earlier if they choose.
Key Entities Referenced
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026: The primary subject of the document: a directive modifying financial statement presentation and disclosure requirements for commercial banks in India.
Reserve Bank of India: The central bank of India, the issuer and enforcer of the amendment directions.
Banking Regulation Act, 1949: The act that empowers the Reserve Bank of India to issue these amendment directions.
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025: The document that is being amended by these directions.
Reserve Bank of India (Commercial Banks – Credit Risk Management) – Amendment Directions, 2026: A related set of directions whose issuance led to these amendments regarding financial statements.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/181
DOR.CRE.REC.382/21.04.018/2025-26 January 05, 2026
Reserve Bank of India (Commercial Banks – Financial Statements:
Presentation and Disclosures) – Second Amendment Directions, 2026
Please refer to Reserve Bank of India (Commercial Banks - Financial Statements:
Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘the
Directions’).
2. On a review, consequent to the issuance of the Reserve Bank of India
(Commercial Banks – Credit Risk Management) – Amendment Directions, 2026, and
in exercise of the powers conferred by the sections 21 and 35A of the Banking
Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of
India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being
satisfied that it is necessary and expedient in the public interest so to do, hereby issues
the Amendment Directions hereinafter specified.
3. The Amendment Directions modifies the Directions as under:
3(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new
sub-sub paragraph (ix) shall be inserted under sub-paragraph 10(5) on ‘Exposures’,
as given below:
10(5)(ix) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India
(Commercial Banks – Credit Risk Management) Directions, 2025 shall be
disclosed as per the following table:
(Amount in ₹ crore)
Sl Particulars Previous Current
No.
Year Year
A. Loans to Related PartiesReserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions,
2026
1 Aggregate value of loans sanctioned to related
parties during the year
2 Aggregate value of outstanding loans to related
parties as on 31st March
3 Aggregate value of outstanding loans to related
parties as a proportion of total credit exposure as
on 31st March
4 Aggregate value of outstanding loans to related
parties which are categorized as:
(i) Special Mention Accounts as on 31st March
(ii) Non-Performing Assets as on 31st March
5 Amount of provisions held in respect of loans to
related parties as on 31st March
B. Contracts and Arrangements involving Related Parties
6 Aggregate value of contracts and arrangements
awarded to related parties during the year
7 Aggregate value of outstanding contracts and
arrangements involving related parties as on 31st
March
4. The above amendments shall come into force from April 1, 2026. Banks may
however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
2